Sydney Shute Shield power Eastwood have withdrawn from the joint venture backing National Rugby Championship club Greater Sydney Rams, citing financial concerns, just weeks before the inaugural tournament is due to kick off.

Eastwood have informed their partner clubs in the Rams - West Harbour, Penrith, Parramatta and Southern Districts - they are formally exiting the partnership, with Woodies president Brett Papworth telling News Corp the Shute Shield club is no longer willing to consider the financial risk. Each NRC club, as a condition of entry to the championship, must have $300,000 to run their own business.

"The only organisation who stands to benefit [the Australian Rugby Union] wants the clubs to fund it, and carry the risk," Papworth told News Corp. "It makes no sense to us, and I am astounded the other clubs have jumped in. There is nothing in it for the clubs. It just relegates club footy further down the chain. At this point it makes no sense for us to be involved. It doesn't make a lot of sense, anyhow."

Rams official Geoff Harper said "Eastwood's decision doesn't impact the viability of the Rams, and they'll continue to make available important resources like players and other things".